Tax measures will make companies more competitive

Thursday, July 16, 2009, 10:28

Tax changes that will leave Hungarian companies with an extra HUF 400 billion in 2010 will make them more competitive when the market turns around, Prime Minister Gordon Bajnai said while visiting a company in Ajka (NE Hungary) on Wednesday.

“It appears as if there is already pick-up, but rather stabilization can be felt on foreign markets,” Bajnai said, adding that the large number of Hungarian companies that rely on exports could stabilize their positions.

The payroll tax on all wages will be reduced by five percentage points from 2010. Even as other countries are raising taxes on labor, Hungary is “concentrating on returning the honor to work.” (MTI-ECONEWS)

Related articles

The government will discuss a package of proposals approved by the National Competitiveness Council on Monday at a cabinet meeting on Wednesday, Minister of Finance Mihály Varga told journalists after the councilʼs meeting, Hungarian news agency MTI reported.

The Institute for Foreign Affairs and Trade will host an event called "The role of Angola in crisis prevention, resolution and peacekeeping in Africa", presented by Amaral da Silva Lala, assistant professor of Higher Institute of International Relations of the Ministry of External Relations of the Republic of Angola next Wednesday (October 17).

There is still a huge labor shortage – approximately 22,000 people – on the ever changing IT market. R&D and AI centers are opening, digital transformation is happening within companies in all sectors, new positions and technologies are appearing, and salaries are further booming: these are the trends and expectations for the rest of 2018 as well.

The National Competitiveness Council discussed proposals on strengthening competitiveness and improving foreign language instruction at a meeting on Tuesday, Minister of Finance Mihály Varga, who also sits on the Council, said at a press conference.

The government is preparing an action plan to make Hungary more attractive for investments, Minister of Foreign Affairs and Trade Péter Szijjártó told an AmCham business forum in Budapest on Friday, as reported by state news wire MTI.

Hungary has moved up five spots to 47th place in this yearʼs IMD World Competitiveness Ranking. Hungaryʼs competitiveness was boosted in part by a reduction in corporate taxes and growth in overall productivity, IMD said.

Last year, the EIB Group signed loans worth EUR 700 million with Hungary to promote SMEs, urban development and competitiveness. The financial support was aimed at export-oriented companies, education, urban development and telecommunication projects.

The British Chamber of Commerce in Hungary (BCCH) and the French-Hungarian Chamber of Commerce and Industry will host a business lunch Thursday with guest speaker László Turóczy, deputy secretary of state for economic planning and competitiveness at the Ministry for National Economy.